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Tax quaries

lovebleritesh (accountant) (38 Points)

15 December 2011

I FILLED THE 44 AD RETUNS IN ITR 4 NOT IN ITR 4S SO DEPARTMENT RAISED THE DEMAD FOR 234 A B & C INTEREST WHY ???????????????????

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6 Replies

Mahesh Paryani (Chartered Accountant) (365 Points)
Replied 15 December 2011

As per section 139 (1)

The return is to be submitted withen the due date and in the prescribed form.

you seem to have not complied with the relevant provision therefore the return you had submitted is void therefore there is an interest under section 234 A,B,C

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RAKESH (Almost CA) (2199 Points)
Replied 15 December 2011

For Presumptive Taxation we have to file ITR 4s. and As per Section 44AD (4) if a person declares his income under presumptive taxation scheme then there is no liability to pay advance tax. So interest U/s. 234B and 234C will always be 0. File a Rectification petition U/s. 154 by selecting "Interest Wrongly calculated in Intimation U/s. 143(1)" and in reasons write also the mistake of selecting wrong form.

So Ur demand will be 0 if the reason of raising demand is because of 234B and C.

amit (st) (111 Points)
Replied 15 December 2011

Agree with rakesh since int u/s 234 b nd c is levied only in case of advance tax nd in 44ad no liability to advance tax

Raghunath Prasad (WORKING) (385 Points)
Replied 16 December 2011

Originally posted by : RAKESH
	For Presumptive Taxation we have to file ITR 4s. and As per Section 44AD (4) if a person declares his income under presumptive taxation scheme then there is no liability to pay advance tax. So interest U/s. 234B and 234C will always be 0. File a Rectification petition U/s. 154 by selecting "Interest Wrongly calculated in Intimation U/s. 143(1)" and in reasons write also the mistake of selecting wrong form. So Ur demand will be 0 if the reason of raising demand is because of 234B and C.

KURIAN XAVIER (Freshly Qualified) (222 Points)
Replied 28 December 2011

Anybody please quote the section or notification for advance tax exemption on 44AD income please ????

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Ambika (Article Assistant) (21 Points)
Replied 13 September 2014

Sir, I HAVE ONE ISSUE.. MY CLIENT HAS SALARY INCOME, BANK INTEREST INCOME AND PROPERTY RENT INCOME OF A.Y.13/14. HE IS AN INDIVIDUAL AND HE HAD PAID SELF ASSESSMENT TAX RS.58020/- HE HAD PAID ADVANCE TAX OF Rs. 20000 ON MARCH 23 2013, NOW IN INTIMATION 143(1) A.O. HAS LEVIED INTEREST U/S 234B & 234C. TAXABLE INCOME INCLUDING SECTION 44AD IS Rs. 1000970. INCOME UNDER SECTION 44AD IS Rs. 209648. TDS RS 62398. COULD U HELP ME WITH A SOLUTION? DUE DATE FOR FILING ORIGINAL RETURN WAS 05.08.2013 AND THE DATE OF FILING RETURN IS 21.03.2014. AS PER THE COMPUTATION IN THE INTIMATION 143(1), INT U/S 234B SHOWS RS 4404 AND U/S 234C SHOWS RS 2098. HOW DO I ARRIVE TO THEIR COMPUTATION?